Do you want to be your own registered agent but aren’t sure if it’s possible—or even allowed?
You’re not alone – many entrepreneurs and small business owners wonder the same thing!
Yes, you can be your own registered agent—but let’s take a look to see if that makes sense for your business.
There are several factors to consider before making that decision.
In this blog post, we’ll break down everything you need to know about being a registered agent (for yourself or using a service), from understanding why it matters to deciding what’s the best choice for you.
What is a registered agent?
A registered agent, also known as a resident agent or statutory agent, is a person or business entity that is designated to receive legal documents on behalf of a company.
These documents may include service of process, notification of lawsuits, and other official government communications.
The registered agent must have a physical address within the state where the company is incorporated and be available during normal business hours to receive these documents.
The registered agent is responsible for ensuring that the company is aware of and can respond to any legal action taken against it.
This is important because if a company does not respond to legal documents, it may be in default and face penalties or even dissolution.
A company usually appoints a professional registered agent at the time of formation.
Who can be a registered agent in Texas?
A registered agent can be an individual, such as an owner or officer of the company, or a business entity such as a law firm or registered agent service provider.
The individual or business entity must have a physical address within the state where the company is incorporated and be available during normal business hours to receive legal documents.
It’s important to remember that some states have specific requirements for who can serve as a registered agent.
For example, in Texas, a registered agent can be an individual or a business entity that has a physical street address within the state and is available during normal business hours to receive legal documents.
Can I be my own registered agent?
Being your own registered agent, also known as self-nomination, has its own pros and cons.
Here is a list of some of the main considerations to take into account when deciding whether to be your own registered agent:
- Cost-effective: Being your own registered agent can save you money, as many registered agent services charge an annual fee.
- Control and privacy: You will have more control over your business information and can keep your personal information private (physical location, home address, etc) by not sharing it with a third-party registered agent.
- Convenience: You will be able to receive and respond to legal documents in a timely fashion, rather than relying on a third-party registered agent to forward them to you.
- Junk Mail: Receive Side step all the junk mail of your business and only be notified of important legal documents.
- Time-consuming: Keeping track of and responding to legal documents can be time-consuming and add to your workload.
- Availability: If you’re not available to accept documents during standard business hours, your company may be in violation of state regulations. Especially with time sensitive information.
- Risk: If you fail to respond to legal documents, your company may be in default and face penalties or even dissolution.
- Responsibility: You will be responsible for ensuring that your company is aware of and can respond to any legal action taken against it.
- Lack of knowledge: If you are not familiar with the legal requirements and process, you may miss some important documents and could put your small business at risk.
It’s important to weigh the pros and cons and consider whether being your own registered agent or use a third-party service.
Should I Hire a Registered Agent Service?
Whether or not to hire a registered agent service in Texas depends on your specific needs and circumstances. (pros and cons above!)
If you are comfortable with managing the legal process, have a physical address within Texas and are available during normal business hours, then you may be able to be your own registered agent.
However, if you want to reduce your workload and minimize the risk, or if you are not based in Texas, then hiring a registered agent service may be a good option for your business!
Simon | Paschal Is Here for All of Your Business’s Legal Needs
Whether you’re just starting out, or have been in business for years, Simon Paschal PLLC is here to support your entrepreneurial legal needs.
From registered agents and company formation to employee agreements and non-competes, we’ve got you covered.
We’re not just lawyers; we’re business owners just like you!
The Bottom Line – Registered Agents
Yes, you can be your own registered agent… But, If an individual acts as a registered agent, they must have a physical street address within the state, not a PO Box.
Also, the person acting as a registered agent should be available during normal business hours and willing to accept legal documents on behalf of the company.
It’s important to weigh the pros and cons and consider whether being your own registered agent is the best option for your particular situation.
Additionally, it’s important to check the rules and regulations of the state where your business is incorporated, to make sure that you comply with all the requirements.
Convinced you need a registered agent? Contact Simon Paschal PLLC to get your registered agent set up today.